Shares of Ambuja Cement fell on lower December quarter sales.

The stock fell as much as 2.8 per cent to Rs 232.75, posting biggest intraday percentage drop since December 12.

The cement maker had said on Monday its December quarter net sales fell 6.8 per cent.

Revenues declined given lower cement volumes, while weak prices impacted Ambuja's operations across regions, particularly eastern India, according to Morgan Stanley analysts.

“We expect a pick-up in volume momentum in the ensuing quarters, helped by improving demand trend, though it will continue to lag the growth of large peers,” say Morgan Stanley analysts.

Up to Monday's close, the stock has gained about 16 per cent this year.